As the Philippines experienced its hottest year on record in 2024, Filipinos turned to sari-sari stores for relief, according to Tech startup Packwords.
It recently released key findings through its mobile sari-sari store app and business intelligence tool, Sari IQ, which analyzes over 1 million sales transactions per month from its network of over 300,000 sari-sari stores nationwide. The report revealed consumption trends that highlight the crucial role neighborhood stores play in meeting immediate needs during extreme weather.
According to its 2024 data, well-known energy drink brand Sting recorded a whopping 83-percent sales increase, with a P34 million gross merchandise value (GMV) compared to the previous year, up from P18 million.
The sari-sari store staple saw notable sales margins, with Region IV-A (Calabarzon) leading at P7 million in GMV, followed by Region II (Cagayan Valley) at P6.6 million and Region III (Central Luzon) at P6.1 million.
While these regions had strong margins, Mindanao experienced the largest sales increases. Specifically, BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) (+1,810 percent), Region XIII (Caraga) (+575 percent), and Region X (Northern Mindanao) (+554 percent) recorded over P650,000 in combined GMV. The sales spikes in Mindanao coincided with the all-time temperature records posted, particularly in Butuan City and Malaybalay City, Bukidnon.
Meanwhile, popular powdered iced tea brand Nestea saw a significant 76-percent spike in sales, recording P30 million worth of GMV compared to P17 million in 2023. Top regions with the highest sales in terms of GMV include Region IV-A (P5.5 million), Region VII (Central Visayas) (P3.1 million), and Region I (Ilocos Region) (P3 million). Meanwhile, Region V (Bicol region) saw the highest sales increase, at +254 percent, followed by BARMM at +160 percent and Region VI (Western Visayas) at +138 percent.
Both Sting and Nestea saw their sales peak in March 2024, coinciding with the declaration of the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) of the start of the dry season in the country. Sting saw a 43-percent sales increase over the previous month, while Nestea saw a 24-percent increase.
"Our data underscores the critical role sari-sari stores play in providing immediate relief and meeting the ongoing demand for essential refreshment, especially during the hotter months. As forecasts predict continued warm periods this year, it solidifies the sari-sari stores' role as a crucial touchpoint for consumers nationwide, especially for regions that are sweltering through warmer conditions,” Packworks Chief Data Officer Andoy Montiel said.
The PAGASA reported that 2024 is the hottest year on record in the country since monitoring began in 1951. With prolonged periods of warm weather and all-time temperature spikes recorded last year, consumers nationwide found ways to cope with the record-breaking heat at their neighborhood stores.
"The sales trends we recorded not only quantify the remarkable growth but also pinpoint regional nuances in both sales volume and growth. These consumption patterns offer valuable insights for businesses looking to serve this vital market effectively," said Packworks CEO Bing Tan.
Packworks’ Sari IQ is an advanced data analytics tool that processes data from sari-sari stores nationwide to help address the growing needs of store owners and its suppliers to serve its communities with greater efficiency.
For more info about Sari IQ and to uncover more in-depth data trends in sari-sari stores, you may visit http://packworks.io/ or Packworks’ Facebook page to learn more.
PACKWORKS PHOTO
